The variable O is approximated by the years of previous experience in the non-farm labor market, K includes the value of the household’s agricultural assets and whether it owns draft animals or not. Further control variables include household characteristics such as age, sex, the head’s education, initial per capita expenditure as a measure of poverty. At the community level, we include dummies for whether in the village temporarily migration is common and whether agriculture constitutes the main source of income. The vector S in the threshold function includes two elements to measure tenure security and one for the transaction cost of land market participation. The former include the share of cultivated land in the village to which households have a long-term land certificate and whether the village had experienced any land redistribution in the 1993-97 period. The latter include the share of households in the village (excluding the household under concern) who participated in land rental or sales markets. To test the robustness of the results, different combinations of the elements of S are included in individual regressions.
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